Expected economic impacts of income tax in Saudi Arabia: Macroeconomic analysis

الآثار الاقتصادية المتوقعة لضريبة الدخل في المملكة العربية السعودية: دراسة تحليلية للاقتصاد الكلي

المؤلفون

  • Imtithal A. Althumairi

الكلمات المفتاحية:

الإيرادات الحكومية
الاقتصاد الكلي
السياسات الضريبية
نماذج التوازن العام

الملخص

 

The study aims to predict the macroeconomic effects of income tax in Saudi Arabia to diversify government income flows and increase non-oil government revenues. The research approach is based on using the dynamic general equilibrium model of the Saudi economy to achieve the results of simulating the scenario of applying income tax by 5% during the period (2020-2030). The results exhibit that income and profit tax reform showed positive results when transferring revenue through government transfers to households. A 5% income and profit tax are expected to improve GDP performance by 0.12%. Macroeconomic indicators, including consumption, investment, exports, and imports, are also improving slightly. Government revenues have enhanced due to the implementation of this scenario, and non-oil revenues are expected to increase from 370 billion Saudi riyals in 2020 to about 568 billion Saudi riyals in 2030. This will increase the contribution of non-oil revenues to total government revenues from 47% in 2020 to 57% in 2030. If income from income tax in the economy is transferred through government transfers to households, this will improve economic welfare.

السيرة الشخصية للمؤلف

Imtithal A. Althumairi

 

Department of Economics || King Saud University || KSA

التنزيلات

منشور

2021-11-30

كيفية الاقتباس

Imtithal A. Althumairi. (2021). Expected economic impacts of income tax in Saudi Arabia: Macroeconomic analysis: الآثار الاقتصادية المتوقعة لضريبة الدخل في المملكة العربية السعودية: دراسة تحليلية للاقتصاد الكلي. مجلة العلوم الإقتصادية و الإدارية و القانونية, 5(21), 48–22. https://doi.org/10.26389/AJSRP.L160621

إصدار

القسم

محتوى العدد